In last nights website update resistance was listed at 1430-1437 and the high was 1429. Our initial support area was broken — but our 2nd tier support was listed at 1377-1392 and the low so far is 1380.

The gold market collapsed this morning all the way down to the 1380 area moving $50 dollars lower from its high at one point. We discussed on the website last night that only a move above 1435 would be a signal for higher prices. We also speculated on last nights update that a break below the 1415 area would be the first sign that the pullback was not complete and based on the HIGHS of Nov/Dec/Jan at the 1430 area —- that if we got a break down — it would favor a BIG down day.

The London market opened right at that 1415 area and by 4 am est -(one hour into the London session)— that level broke down and the drop made its way down to our second tier listed area circa 1377-1392 — with a 1380 low shortly after the New York open.

Resistance for the remainder of the day is 1403-1409 == and we’d look for gold to run into resistance there on a bounce. Support is the 1377-1385 area. Gold should find closing support there.

Let’s go to the chart. We can see the move back up on Monday was back to the lower red line — and that is where we were looking at 1436 as an important price point. The reversal lower accelerated on the break of the dotted trend line. The red arrow that is on the chart was one of the two on our chart last night on the website update. That area — 1377-1385 is key to watch on any pullbacks. AT THE MOMENT — Gold has bounced back to the 1398 area —-right where the dotted trend line is.

In summary — gold and silver have joined all the other markets in a hard move lower. The decision to exit our short term positions in gold last Thursday at 1417 on the website and to move to the sidelines coming into this week turned out to be a good move. From a short term perspective – It’s best to let things shake out rather than trying to pick a bottom. The 1377-1385 area is an important intra day price point — and the 1398-1403 area (the dotted line) on a closing basis. GOLD SHOULD ENCOUTER RESISTANCE at that dotted line —circa 1398-1409.

The longer term trends are still intact — we’ll have to assess that time frame at the end of the week depending on how things play out. For now —- its best to let things shake out on the short term. Watch 1377-1380 —–and the dotted trend line.

by Bill Downey

Don’t forget Exclusive Free trial to Goldcoin readers on Gold Trends.net
Login: demo-feb Password: spot2see

The most detailed info that GoldTrends.net publishes is available on the web site via paid subscription.

Last nights website listed resistance at 1434-1444 and the high so far is 1433. Support was listed at 1398-1410 and the low so far is 1418.

London Gold Fix $1424.50

In early Monday action the gold market is facing some countervailing forces. On one hand, the uncertainty off the Japanese situation seems to be providing gold with some support but on the other hand, there continues to be an overriding fear that recent events are poised to throw the global economy back into a slowdown. Weaker oil and commodity prices and weakness in global equity markets overnight has market participants in uncertainly today. So far gold is higher and that suggests that gold is still being seen as a safe haven instrument. The thinking this morning is recent events have increased the need to leave global liquidity high and that appears to make the task of controlling inflation a little more problematic. With Indian gold prices trading higher overnight, it seems as if many eyes in the gold market are focused on the unfolding nuclear threat in Japan. While the premium on gold bars continued to jump overnight and to some that hints at gold’s ongoing move to quality status. Reports of more explosions at the reactor in Japan are being reported this morning.

Going to the price chart — the lows from last week was a double hit of the dotted trend line. As long as that area holds the potential for gold to move higher remains in play. On the upside — there have been repetitive tests of the 1430-1435 area and it looks like gold wants to move above that area.

Support for the remainder of the day is the 1417-1422 area and resistance is 1434-1444. The lower red channel line is current resistance to the upside near 1435 and extending higher as the week progresses.

Once again we see NO move to the US Dollar and it is currently hanging on a thread to its downtrend lines.

In summary — Japan plant safety and the uncertainty of the developing situation is the markets main concern but it seems as things have at least stabilized in most markets for the moment but markets remain on edge.

Gold support looks good in the 1417-1422 area. There is current hesitation near the 1430 area and there have been repetitive attemps for gold to move above 1435 since the beginning of March. If you run a 15 min chart you’ll see the action there. This still remains the key area today for gold to break above in order to end the trade range we’ve seen so far in March. The upside still has the advantage —- and a close above 1430 would add to that outlook of higher price this week.

by Bill Downey

Don’t forget Exclusive Free trial to Goldcoin readers on Gold Trends.net
Login: demo-feb Password: spot2see

The most detailed info that GoldTrends.net publishes is available on the web site via paid subscription.

The impact of the growing number of recent natural disasters will inevitably provoke a deepening of the global economic crisis.
Our thoughts and hopes are definitely with the people of Japan, New Zealand, Australia, Chile, Sumatra, Brazil, China, Pakistan and all of the other regions affected in recent times by catastrophic natural disasters.

The sheer scale of these events and especially those in Japan reminds us of the fragility of humankind in the face of nature’s wrath. The trauma and tragedy of all these events are beyond comprehension unless you have survived one.
As hope still prevails that survivors may be found, what will the economic impact be of these events?
Profound!
The Nikkei has already dropped over 6% in the first day of trading. The central bank has injected over $180 billion to provide liquidity.
Remember that Japan was already struggling with a debt crisis on an enormous scale. Concerns will be that Japanese foreign interests and reserves will be liquidated to service the rebuild and to try and control the debt. There is over $5 Trillion of Japanese foreign investment and any significant moves to pull out large quantities would have a serious knock-on effect around the world.
Now whole areas of the economy will be affected. Manufacturing production in Japan’s most important industries and major corporations will be hit either directly or indirectly because of suppliers disappearing. This too could have an effect on Japanese industries abroad.
Infrastructure rebuild costs will be huge and the time to undertake this will also be an influencing factor. First guestimates indicate years or even decades will be required for Japan to rebuild and recover after the Japanese Prime Minister declared the disaster as big if not bigger than that suffered during World War II.

Japanese exports will be greatly affected and Japan will have to import much more to cope with deficiencies.

Nuclear Meltdown?

The unknown is now the increasing possibility that a nuclear incident will further worsen the impact and could have environmental issues for other countries.
The human cost, trauma, lack of labour will be another factor.
Many of these factors affect all areas hit by disasters and the pressure on economies is mounting.
But in a world already at odds with itself and unrest spreading through other parts of the world where does this leave us.
Nobody knows the real costs or the real impact of any of these tragedies. Experts make a best guess.
One thing can be sure is that collectively they present the global economic picture with additional demands for investment that it simply cannot meet.
Maybe Bernanke can introduce QE3 and print more dollars for US efforts to help their neighbours but as we know this if anything is compounding the world’s problems and bits of paper are not real money or wealth.

Financial Meltdown

What will happen to the large insurance groups who will be hit for claims on a colossal basis? Will they be able to pay? Will they indeed survive?
Are they not part of the global cycle for investing, hedging, banking etc?
Their pain will be shared and passed on but in doing so we will finally see the world wide web of debt come undone.
The fact is there is not enough money on the planet to repay all the hedges, spreads, bonds and loans.

This latest natural disaster is a forerunner of the man-made one to follow. The world is heading for financial meltdown and we are powerless to stop it.

The only thing you can do now is start to plan for the inevitable.
Ditch toxic assets, currencies and investments.

Click here to view a Special MoneyWeek presentation.

Get out of “paper promises” and get into tangible & real.
Look for a safe refuge or haven to park some “money” or wealth that may see you through the hardest times.
Don’t wait too long as hindsight is not an option.
Your insurance now rests with gold as the safest way to preserve your wealth and to survive the crisis we are facing.
Be safe, be prepared and buy now.

In last nights web update resistance was listed at 1417 – 1425 and the high so far is 1419. Support was listed at 1398-1405 and the low is 1404.50

London Gold fix 1409.75

CME NEWS

Gold waffled around both sides of unchanged overnight as economic and financial uncertainty by the massive Japan quake overnight.

The gold market will probably turn its attention to tensions in the Middle East, as the day of protest in Saudi Arabia yields some headlines.

While the market is likely to discount supply side news in the trade today, some news agencies overnight pointed out a noted decline in Chinese gold production for the month of February and that could lend some passing support to gold prices.

From a chart standpoint — the lows fom yesterday are holding as they have been tested a number of times overnight. The dotted trend line has provided support for the second day in a row. Support for the remainder of the day is 1398-1405 and resistance remains at 1417-1425. In summary prices should trade in the 1405-1420 range today. We’ll pick it back up next week. Have a great weekend.

by Bill Downey

Don’t forget Exclusive Free trial to Goldcoin readers on Gold Trends.net
Login: demo-feb Password: spot2see

Currency diversification will support gold and gold is such a tiny market that a substantial move into it by investors could take it parabolic, gold mining entrepreneur Rob McEwen tells King World News in an interview today. Excerpts from the interview can be found at the King World News blog here:

Gold could go parabolic

Courtesy of
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

In last nights website update resistance was listed at 1432-1438 and the high was 1431.50 — initial support levels at 1417-1425 were broken — and 2nd tier support was listed at 1403-1409 and the low so far is the 1410.50

Last nights website update discussed a break below the 1420 area would be suggestive that this weeks pullback would still be in play and that next support would be the 1398-1412 area.

Gold and other commodity prices were undermined by softer than expected Chinese economic data, increased jobless claims in USA and renewed concerns of Euro debt because of news of a Spanish debt downgrade. News that PIMCO was turning bearish toward US government securities has also provided the potential for higher interest rates.

News that South African gold output in January rose by more than 15% over last year may have added to today’s downdraft from a short term perspective.

Developments in the Middle East should continue to provide some measure of support for gold prices, especially with the day of protest directly ahead in Saudi Arabia and the situation in Libya in a continued state of flux.

While equity markets in Asia and Europe were lower during overnight trading and the US stock market down hard in early trading, there’s a lot of bearishness this morning.

Looking a today’s chart — we can see that once the lower channel line gave way —- a lot of stops were set off and are getting cleared out. We’ve discussed this potential since Tuesday evening on the website.

Support for the remainder of the day is the 1398-1409 area and resistance is the 1418-1425 zone. PRICE IS AT THE LOWS from the first week of March near 1410 and should bounce around that area plus or minus a few dollars. If that area gives way then a test of the dotted trend line at 1398-1405 will be in play.

In summary — the lower than expected weakness in China and USA woke up complacent equity bulls. With commodities overbought in most area’s — it has brought on a lot of weakness.

On the chart, the lower red channel line was finally broken — and now we have to see whether gold holds a few dollars above or below last weeks lows near 1410. If prices can’t hold there — then a test of 1398-1403 will be the next test area. With the Saudi demonstrations on Friday — there should be some support going into the close near these levels but the sell off is very hard in equities — and may keep pressure on all fronts.

Prices need to get back above the 1420-1425 area in gold to neutralize this pullback.

by Bill Downey

Don’t forget Exclusive Free trial to Goldcoin readers on Gold Trends.net
Login: demo-feb Password: spot2see

In last nights website update initial resistance was listed at 1432-1438 and the high so far is 1437. Support was listed at 1417-1425 and the low so far is 1423.

London Gold Fix $1431.50

Prices drifted lower thru the Asian session and the 1423 low came about 2 hours before the London open. London once again took prices higher into the New York open where price peaked at the 1437 area as the COMEX was opening.

he Gold prices strength and firming this morning came from reports of an oil refinery called Ras Lanuf being bombed in Libya reversed a downtrend in both oil and the metals. The refinery has been shut down — and there a black cloud rising. The refinery has been shut down — but there are no reports if it has been damaged. About 1 mil barrels of oil has been reduced from output from a total of about 1.6 mil barrels.

Concerns that higher interest rates in the Euro zone might be too much for weaker EU members, but might require stronger scheduled data readings from the Euro zone or less hawkish ECB dialogue. Yields on Portugal debt moved higher again today at 7.7% after the auction. Resistance for the Euro is 140-141.

News of strong Indian derivative gold demand from the month of January was also supportive for gold, but the main focus of the gold trade will probably continue to be the direction of oil prices.

While equity markets in Asia and Europe were mixed during overnight trading, the US stock market on today’s session opened unchanged but has been drifting lower as players are coming to the realization that the middle east crisis is not going away soon. Today is the 2 year anniversary of the stock market bottom from Mar 9th 2009.

Meanwhile the Dollar is slightly higher against most of the major currencies during overnight trading after holding on to dear life yesterday near the 76 area before price bounced to near the 77 area. Price is currently in the middle of its bounce range. The 76 area is an important point for the dollar.

From a price chart perspective — the key for gold price today is the 1434-1438 area for resistance —-basically near the area of Tuesday’s high. This is the spot that the bears are trying to contain and the area the bulls must over come to keep the the uptrend going. IF we can move above the Tuesday highs —the potential to move towards 1450-1460 will come into play. As long as price is above the lower red line —- the trend is up but remain cautious. Support is the 1417-1422 area and resistance is 1436-1437.

In last nights website update initial resistance was listed at 1432-1438 and the high so far is 1437. Support was listed at 1417-1425 and the low so far is 1423.

London Gold Fix $1431.50

Prices drifted lower thru the Asian session and the 1423 low came about 2 hours before the London open. London once again took prices higher into the New York open where price peaked at the 1437 area as the COMEX was opening.

he Gold prices strength and firming this morning came from reports of an oil refinery called Ras Lanuf being bombed in Libya reversed a downtrend in both oil and the metals. The refinery has been shut down — and there a black cloud rising. The refinery has been shut down — but there are no reports if it has been damaged. About 1 mil barrels of oil has been reduced from output from a total of about 1.6 mil barrels.

Concerns that higher interest rates in the Euro zone might be too much for weaker EU members, but might require stronger scheduled data readings from the Euro zone or less hawkish ECB dialogue. Yields on Portugal debt moved higher again today at 7.7% after the auction. Resistance for the Euro is 140-141.

News of strong Indian derivative gold demand from the month of January was also supportive for gold, but the main focus of the gold trade will probably continue to be the direction of oil prices.

While equity markets in Asia and Europe were mixed during overnight trading, the US stock market on today’s session opened unchanged but has been drifting lower as players are coming to the realization that the middle east crisis is not going away soon. Today is the 2 year anniversary of the stock market bottom from Mar 9th 2009.

Meanwhile the Dollar is slightly higher against most of the major currencies during overnight trading after holding on to dear life yesterday near the 76 area before price bounced to near the 77 area. Price is currently in the middle of its bounce range. The 76 area is an important point for the dollar.

From a price chart perspective — the key for gold price today is the 1434-1438 area for resistance —-basically near the area of Tuesday’s high. This is the spot that the bears are trying to contain and the area the bulls must over come to keep the the uptrend going. IF we can move above the Tuesday highs —the potential to move towards 1450-1460 will come into play. As long as price is above the lower red line —- the trend is up but remain cautious. Support is the 1417-1422 area and resistance is 1436-1437.

by Bill Downey

Don’t forget Exclusive Free trial to Goldcoin readers on Gold Trends.net
Login: demo-feb Password: spot2see

In last nights website update resistance was listed at 1438-1444 and the high so far is 1444.50 — support was listed at 1420-1427 and the low so far is 1430.50

London Gold Fix $1437.00

Oil prices are up this morning with conditions in Libya still very tense

With continued unrest in the Middle East and with protest day Saudi Arabia due later this week, the Middle East should remain in headlines this week.

The Commitments of Traders Futures and Options report as of March 1st for Gold showed Non-Commercial traders were net long 230,325 contracts, an increase of 17,075 contracts. The Commercial traders were net short 286,120 contracts, an increase of 19,329 contracts. The Non-reportable traders were net long 55,794 contracts, an increase of 2,253 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 286,119 contracts. This represents an increase of 19,328 contracts in the net long position held by these traders.

The gold market opened strong in Asian trade on Monday and prices maintained a steady bid of 1435 to 1438 throughout the London session and into the 6 am EST period where price then moved up to the 1444 area going into the comex New York Open. Since then price has begun a pullback that has brought gold back to the 1432 area.

First support is the 1426-1430 area and resistance is the 1438-1444 area. Key Resistance is the upper red channel line near the 1455 area. As long as price is above the red channel line near the 1420 area, the short term trend remains up.

Thanks to Bill Downey of Goldtrends.net

Exclusive Free trial to Goldcoin readers on Gold Trends.net
Login: demo-feb Password: spot2see

As previously reported on Goldcoin, Gold currency is making a comeback! In Utah, they could soon be buying a hamburger with gold!, the state of Utah has been considering a bill that would allow gold coins to become a new inflation-proof currency that would also be exempt from state capital gains tax.
The bill, HB317, was introduced by Republican Brad Galvez and it passed by 7 to 1 in the Utah House Government Operations Committee on Wednesday.

The bill sets out a framework for the Legislature to explore the possibility of an alternative legal tender system being created but the use of a gold currency would remain voluntary. The timing stipulated is for conclusions to be submitted for the 2012 session.
The “Utah Sound Money Act” was drafted by local attorney Larry Hilton who said that “un-backed money created by the Federal Reserve to stimulate the economy, is hanging over us like the sword of Damocles waiting to just come down in an avalanche and destroy the value of our currency.”

In short it represents the frustration of ordinary people who feel that the “paper dollar” no longer serves their needs. They have simply lost faith in a devalued currency which has eroded their wealth, their incomes and their purchasing power.

A Symbolic Act that brings back the Gold Standard?

Further comments came from Jeffrey Bell who is Policy Director for the American Principles Project based in Washington D.C. He explained that this bill would be viewed as a “symbolic act”. He added “But it sends a signal to Washington that political elites who want to leave the value and staying power of our currency uncertain, indefinite, so that they can at will intervene to do what they think would ameliorate the situation facing the U.S. economy.
The last time we had the system that we are recommending — the  International Gold Standard — it set a record for least inflation”.

It is interesting to note that the US Dollar is under pressure from all sides and its role as a “Global positioning Currency” is severely under threat as is its very existence.
We have previously discussed the possible role of Gold as a future money in Gold Money, a currency of the past…. and the future? And the demise of the Dollar in Financial Armageddon from worthless Paper Money.

Word is not only spreading but people are taking action against worthless fiat currencies and you too can do something now by taking out insurance against a fiat currency collapse – buy gold and gold coins. Remember it is always prudent and advisable to have insurance before the event – in this case an Economic crisis that could happen any time soon.

If the fat finger flash crash of 2010 taught us anything, it’s that our financial markets aren’t as sound and secure as officials want us to believe. With heavy leverage, computer trading platforms, financial secrecy laws, and the unabashed greed that pervades the halls of international financial centres, the entire global marketplace is susceptible to manipulation. The official post-mortem on the 2008 downturn suggests that the economic collapse, which started with rising oil prices and a sell-off in stocks, was caused by, among other factors, an over-leveraged and over-insured financial system with the culprit being an alphabet soup of financial instruments like Mortgage Backed Securities (MBS) and Credit Default Swaps (CDS).

As is the case with the lone gunman who shot Kennedy and the two planes that brought down the towers, the investigations surrounding the financial crisis were expedited, streamlined and have been officially closed.
A recent report from an independent contracting firm, however, warns that the events behind the financial crisis of 2008 and our economic woes today should not be underestimated and simply dismissed as having been a one-off event.

Evidence outlined in a Pentagon contractor report suggests that financial subversion carried out by unknown parties, such as terrorists or hostile nations, contributed to the 2008 economic crash by covertly using vulnerabilities in the U.S. financial system.
The unclassified 2009 report “Economic Warfare: Risks and Responses” by financial analyst Kevin D. Freeman, a copy of which was obtained by The Washington Times, states that “a three-phased attack was planned and is in the process against the United States economy.”
While economic analysts and a final report from the federal government’s Financial Crisis Inquiry Commission blame the crash on such economic factors as high-risk mortgage lending practices and poor federal regulation and supervision, the Pentagon contractor adds a new element: “outside forces,” a factor the commission did not examine.
Regardless of the report’s findings, U.S. officials and outside analysts said the Pentagon, the Treasury Department and U.S. intelligence agencies are not aggressively studying the threats to the United States posed by economic warfare and financial terrorism.
“Nobody wants to go there,” one official said.

In a previous report titled When China Pulls the Peg, Cardiac Arrest Will Follow in the USA we opined that the US, China and other nations are involved in economic warfare as a matter of policy. While diplomats enjoy State Dinners, luxurious travel and smile for the cameras, behind the scenes is a tug of war where entire populations of people, numbering in the billions of souls, are affected by negotiations and trade agreements. In the case of China, one must have their head in the sand to believe they are not actively competing on the economic battlefield. Not only do they have a direct influence on the future of the US dollar, but they have spent the better part of the last three decades mobilizing their labor force by significantly undermining US trade influence. The effect on the US economy is clear. While the Chinese grew their economy, they set into motion a series of events that have begun to impoverish the middle class in America. The result is fewer jobs and an indebted social system on the brink of collapse.
This did not happen by chance. It is by design.

“This is the ‘end game’ if the goal is to destroy America,” Mr. Freeman said, noting that in his view China’s military “has been advocating the potential for an economic attack on the U.S. for 12 years or longer as evidenced by the publication of the book Unrestricted Warfare in 1999.”

According to the report, elements within China, Russia, middle east oil producers and other interested parties may, separately or in unison, be actively pursuing policies and actions that are specifically designed to collapse the US economy.

“The preponderance of evidence that cannot be easily dismissed demands a thorough and immediate study be commenced,” the report says. “Ignoring the likelihood of this very real threat ensures a catastrophic event.”
The report concluded that the evidence of an attack is strong enough that “financial terrorism may have cost the global economy as much as $50 trillion.”

The Pentagon report indicates that there is a strong likelihood that whoever is behind the machinations is operating under a three phase approach. The first phase of the attack was the build up of excessive leverage and credit in asset markets, real estate and commodities. The second phase was the crash we experienced in 2008 and early 2009. International hedge funds and financial firms, some of which may be direct extensions of certain governments and operating under international secrecy provisions, initiated sell offs through the use of techniques like “naked short selling” and traditional “bear raids.” Lehman Brothers and Bear Stearns were wiped out and went down as the first casualties of phase two.

Since March of 2009 the economy has seemingly been growing, at least that’s what we’ve been told in official government memorandums and mainstream financial analysis. As evidenced by a rising stock market, the economy is well on it’s way to recovering the losses that occurred between 2007 and 2009.

While everything may seem fine to most Americans, including our elected officials and financial gurus, according to the threat assessment discussed in the Pentagon report, the powers-that-be who were responsible for the first two phases of the attack against our economic and financial system are now actively in the process of implementing and executing Phase III:

“Based on recent global market activity, it appears that the predicted Phase III may be underway right now.”
The third phase is what Mr Freeman states in the report was the main source of the economic system’s vulnerability. “We have taken on massive public debt as the government was the only party who could access capital markets in late 2008 and early 2009,” he said, placing the U.S. dollar’s global reserve currency status at grave risk.

The end-game is approaching, and as we’ve suggested in previous commentary, it is predicated on excessive government leverage, spending and monetization. The United States may very well be in the final bubble, one that trend forecaster Gerald Celente has referred to as the bailout bubble.

The formation of the final bubble, if it were a planned event, would have first required the first two phases of the attack as outlined in the report. Build up the leverage in the private sector, then completely crash it. This strategy necessitated a political response from the President, Congress and all manner of financial regulators.

As we saw in 2008, the strategy worked perfectly. Within days of the stock market collapse Presidential candidates were pausing their campaigns, Congress was having emergency meetings, and the Secretary of the Treasury threatened that there would be tanks in the streets if something wasn’t done. The response, of course, is well known and has led to tens of trillions of dollars in more debt in an attempt to stabilize the economy.

As the theorized Phase III continues to play out, we are likely to see more intervention in the form of crisis spending and quantitative easing. This continued printing of money is the Achilles’ heel. In just the last two years, because most global investors have begun shying away from US debt instruments like Treasuries, it is our very own Federal Reserve, a private banking conglomerate that is the number one buyer of US debt. The Chinese are already cutting back on their investment. And in due time, when the time is right, the Chinese simply have to say “no more,” at which point the government bailout bubble will burst.

Once in motion, there will be no more magic bullets for the Federal Reserve, Treasury Department, Congress or the President. We’ll have crossed the Rubicon.

What it will look like on the other side is anyone’s guess, but it could be that magic financial bullets get replaced with lead and missiles, as is usually the case when economies of nations are destroyed.
While US officials may not be overtly discussing economic warfare, one thing is for sure, and that is that the Pentagon and Military are Actively War Gaming ‘Large Scale Economic Breakdown’ and ‘Civil Unrest’. Army game theorists have spent time on financial exchanges with traders attempting to learn how an economic attack could be identified and are reportedly working on preventing such a possibility.

It’s our view, however, that if military and intelligence agencies are just now getting on board with the idea of economic warfare, it may very well be too late. If those who would bring down the US and global financial systems, be they foreign governments or shadow elements operating outside of traditional national boundaries, are actively engaged in “Phase III,” then it is likely that such an attack cannot be prevented – only managed and mitigated.

If this most recent report is accurate in its assessment, the only thing left for the average American at this point is to prepare for an imminent catastrophic shock and awe that will destroy life in America as we have come to know it.
Author: Mac Slavo from SHTFPlan

Planning for a crisis and survival means protecting wealth in universally accepted tangible assets such as Gold Sovereigns or other gold coins. Paper money will only keep you warm for a short time as it burns to make a fire. Gold has proved throughout history to be a means of survival through crisis and even wars. Click here for more.

Malls Witnessing Gold Rush as Shoppers Fear Inflation

Jewelers at shopping malls across the capital are witnessing a gold rush as residents spooked by inflation fears look to protect their money.
Statistics from Beijing Caibai, the city’s largest jewelry store, show sales of gold and other jewelry have totaled about 4 billion yuan so far this year, a 70 percent increase year-on-year.

Wang Chunli, general manager, told METRO that hundreds of customers are lining up outside every day to buy gold accessories, such as necklaces and rings. To cope with demand, the store has even introduced a string-weave service, she said, adding: “We’ve also arranged experienced staff to be on duty and increased the number of security guards.”

After seeing the enthusiasm for gold investment, insiders predict prices will continue to rise this year.
Zhou Xiangrui, deputy general manager of Guo Hua, an established gold and jewelry store, even suggested that the surging demand could set a new record, saying: “The price is estimated to increase by 10 percent this year.”

The price has already reached 338 yuan a gram at Caibai and 375 yuan a gram at Beijing branches of Chow Tai Fook and Chow Tai Seng, according to data from cngold.org, a popular gold investment website.

Concern over the volatile conditions in the Middle East and the debt crises in Europe could also impact gold prices, said Ji Zhiguo, an analyst the Beijing Gold Trade Center.
“This year we might see some investors purchasing more than 10 kilograms of gold bars again,”
he said. “A booming gold market coupled with a stable price increase could prompt more individuals to rush in and invest.”

Gold sales in large shopping malls citywide increased by at least 40 percent year-on-year during the first two months of 2011, Legal Mirror reported.

According to China Central Television, about 40 investors are rushing to purchase gold bars every day at the Wang Feng shopping mall in the Xinjiekou area, with most snapping up several kilograms at a time.

Wang Qiming, 34, who lives in Haidian district, said he has purchased both gold bars in malls and paper gold online.
“The capital has limits on house and car purchases, and it might be hard to preserve the value of my assets if I save cash in a bank account. So I’ve started to focus on gold investment,” he said, explaining that he plans to spend 300,000 yuan on 100 grams of gold bars.

“Stock markets change very fast and are not stable,” said Wang. “Gold investment seems much safer.”
A report released by the World Gold Council at the end of 2010 said China is the strongest market for gold investment and gold accessory purchase.

By Xu Fan
China Daily, Beijing

and courtesy of Chris Powell and GATA

German philosopher Arthur Schopenhauer once said that “all truth goes through three stages. First it is ridiculed. It then it encounters strong opposition and finally it is considered to have always been obvious”.

Think back to January 2007. All the elements of the crisis were already in place but the prophets were rapidly called “doom-mongerers”, stupid pessimists who were incapable of imagining the power of interventions made by the monetary authorities and the central banks. Countries had relatively little debt. Sovereign debts were therefore on assets held as a priority.

Certainty is illustrated by the expression “Fly to quality”. Each stock market shock leads to massive arbitrage away from equity markets to bonds which are considered to be “invulnerable”.

We were in the first stage which was described by Schopenhauer. The one during which we ridicule those casting doubt on the soundness and financial sustainability of large states.

Then came the great crisis of 2008. The one needing billions of Euros and Dollars of stimulus, monetary creation and social expenditure.

Deficits were dug out quickly and in a way never imagined by all the economic commentators. Caught in the cross fire of sagging tax revenue and massive spending support, the hole could only become quite cavernous. By the end of 2010, the idea of the widespread failure of Western States is now only encountering soft opposition. “No, come off it, a Country does not really go bankrupt; anyway, growth is starting in the United States which is, after all, the World’s largest economy”.

Exactly. Remember the figure of 2.9% which was the growth rate for the U.S. economy in 2010. Remember it well, we’ll come back to it.

Growth does not cure the crisis

Despite this 2.9% (which needs to be borne in mind), unemployment did not fall at all. Some kill-joys who were looking at the real unemployment rate in the United States (the one published by the FED and which also records those looking for work but receiving no benefits) even dared to say that this figure had reached more than 17.4%.

Despite this 2.9% (growth), approximately 43 Americans eat every day thanks to “Food Stamps” which are handed out to the poorest of society to enable them to go stores and buy basic items of food. It is a modern version of the soup kitchen that avoids shocking images of queues of the miserable and hungry unemployed. In short “food stamps” are a cross between ration books and restaurant vouchers.

Let’s turn now to the kingdom of perfidious Albion. Our English friends had the brilliant idea of electing a new “Conservative” Prime Minister, Mr Cameron. He argued that “If you do not deal with the the debt, you will never grow”. His main opponent the “Labour” Ed Miliband replied: “If you do not grow, you will never get out of the debt.”

That’s a neat debate. How can we get out of this crisis? How do we get back to growth? By spending more in stimulus measures to stimulate the economy as argued by our Labour friend? Why not…but with 11% deficit it is difficult to spend more without going immediately bankrupt.

So, the Conservative Prime Minister is exploring the only path which theoretically still holds out some hope…..the one of austerity. We cut all spending. Not a little but very much. Civil Servants are laid off (490 000 less up to 2015). Tuition fees? Tripled, quadrupled or quintupled. Teachers? Laid off. Parents will have to organise themselves to provide teaching for their children. Judging by how things are going over there, there will be no shortage of available parents in the coming months.

Heavy debt + recession = insolvency

Is this good or bad? This is not important in terms of ethics (although the debate is fascinating). But will this work in economic terms? Will the treatment of austerity lead to “healthy” growth?

The answer at this time is clear and unequivocal. No. The United Kingdom has double-dipped back into recession. Not officially, because there needs to be three months of negative growth, as Mrs. Largarde calls it, for an economy to be officially considered to be in recession. We are only talking about one quarter at the moment. The first one. However, a recession also means a fall in tax revenue which, given that this revenue is to be used to pay the debts which have already reached monstrous levels, is not the best of news. In summary therefore heavy debts + recession = insolvency.

Yes, but look! Going back to the United States of America. Remember our figure of 2.9% growth (the one that you must not forget!)? This is indeed a reason for hope. The Americans have decided, unlike the British, to let deficits “spin” in order to stimulate growth. And it works, 2.9% growth! Well, at the risk of shattering a few wonderful hopes, it does not work. Why?

Three figures:
The 2.9% growth represents a total increase in GDP of 541 billion U.S. dollars.
To create these 541 billion dollars of new wealth, the political and monetary authorities have created … 1,700 billion in new debt. To be clear, for every dollar of growth, you need 3.14 dollars of new debt.

Therefore, we can make two observations:
- The debt is growing faster than the wealth created with these new debts.
- The global economy is no longer able to create growth without debt.

Is the “stimulus” the last hope of humanity?

In 2011-2012, we return to the last stage of the truth according to Arthur Schopenhauer. The bankruptcy of countries will be “deemed to have been obvious.” The world will acknowledge the widespread insolvency of the Western nations. This will occur either because the stimulus will have created a debt which is too large … or because austerity measures will have created excessive debt; the end result caused by the austerity plans is essentially the same when adjusted for social and human damage.

Both routes lead us straight into insolvency. The only advantage of austerity measures is that they enable you to save time.

Everyone could see that the stimulus led to disaster. The austerity measures still have another 12 to 24 months to go before they either convince or else show that they will not work any better ….
There is always the French way of course; the one espoused by Mrs. Lagarde.
The path of the “Stimulus”.
Half austerity – half stimulus; half angel, half demon.
The stimulus is the last hope of humanity. A bit thin isn’t it?

Translation of an article by
Charles SANNAT
Chargé d’affaires BNP Paribas

The remarks did not reflect the opinion of BNP Paribas and in no case constitute an incitement to invest.

Driven by persistent inflation in China and the worry about the appreciation of money, the demand for gold in the Asian continent remains high and in the first month of 2011 this reached a record. In this context, the “new rich” and those in the higher income segments both in China and India are throwing themselves into gold as a sure way of diversifying their investments.

Only last January, the Commercial Bank of China, one of the main financial institutions in the country, sold a total of 7 tonnes of gold ingots, which is the equivalent of around half of all the sale operations recorded by the bank in 2010. However, the attraction for gold is not limited to the buying of ingots: the growing demand for non-physical investments involving gold, through term deposits, could exceed 5,000 million Yuans by the end of the year.

One of the keys to this growing demand for gold in China is connected with high prices, which increased by 4.9% in January, compared to the same month of the previous year. Even though analysts are projecting a higher figure, around 5.3%, worries over inflationary pressures in the Asian giant could trigger an increase in interest rates by the Central Bank.

Faced with this scenario, a recent report by the World Gold Council (WGC) indicates that it is expected that the demand for gold from China will increase during 2011, as will demand from India for jewellery. According to the WGC, the growing interest in gold is shown in the recovery being enjoyed by the jewellery sector which registered an annual global demand which was some 17% higher than that shown in 2009.